The federal government’s emergency relief for more than 40 million student loan borrowers is set to expire at the end of September, amid sky-high levels of unemployment and an overall economy still stifled by rising coronavirus cases, Politico reported. The looming end of the benefits also comes with a clear political dilemma in an election year: Unless Congress or the Trump administration intervenes, the Education Department will demand monthly loan payments from tens of millions of borrowers in October, just before they head to the polls. The department is already preparing to send warnings to borrowers, starting Aug. 15, about the expiration of their benefits. Both Republicans and Democrats have touted the student loan relief, which was included in the CARES Act in March, to their constituents over the past several months. But it’s not yet clear whether they will come to a bipartisan agreement in the coming weeks on what to do when the sweeping reprieve for borrowers comes to an end. Congress is now debating ways to avert the student loan cliff in October as it begins negotiating another economic rescue package. Lawmakers are already poised to blow past deadlines to extend other benefits in the CARES Act, such as expanded unemployment payments and protections from housing evictions. The expiration of the student loan benefits hasn’t been as prominent in the debate over the next stimulus bill — and it’s far from clear whether or how both parties would come to an agreement.
